I have two big rules when shopping for small space furniture. The first and most important rule is that everything should serve multiple purposes. Rule number two: if I can hang it on the wall, all the better!
1. Wall Mounted Shelves — Whether you buy or DIY, you can customize a lot of storage by mounting shelves on the wall. Place them behind a sofa or fill in a small wall by going floor to ceiling. Use them for as bookshelves or use small boxes to contain little stuff.
Shown: Reclaimed Wood Shelf from West Elm $78 - $118
2. Decorative Boxes — This is an attractive way to stash documents, toys, extra bedding and just about anything else that'll fit. Stack a few under a table or use them on shelving.
Shown: Grey Felt File Box from CB2 $14.99/each
Shown: Audrey Side Table from Urban Outfitters $189
4. C Tables — The base of these clever side tables slide under a sofa or chair, which is great when you have limited floor space. The shape also allows you to use it as a laptop table while sitting in your favorite easy chair.
Shown: IKEA STOCKHOLM Side table $99.99
5. Storage Ottomans — Ottomans are already pretty darn great. They're a place to put your feet, impromptu coffee tables and emergency seating. Pick one with storage and you'll also have a place to stash remote controls, magazines and other potential clutter.
Shown: Castered Tufted Storage Ottoman from Ballard Designs $399
6. Baskets — These are another great way to stash blankets, magazines and other living room essentials. Baskets are also a little softer so they warm up a space more than a stack of boxes.
Shown: Roll Weave Storage Basket-Ottoman from Crate & Barrel $79.95
7. Wall Mounted Cabinets — Mounting a cabinet on the wall can give you a piece of furniture where you might not think there's enough room. Mount next to an easy chair or use it by the front door as a landing strip. You'll get a surface for drinks or knick knacks as well as some extra hidden storage.
Shown: WonderWall 2 Drawer Cabinet from BluDot $699
(Images: As credited above.)